Does insurance cover mold in Texas? It depends on your policy
There is no single answer for every Texas homeowner. Policies are written differently, and mold is one of the areas where wording matters most. In general terms:
- Some policies limit mold coverage to a set dollar amount, and some exclude it or offer it only as an add-on.
- Coverage often depends on what caused the water. Damage from a sudden event may be treated differently from damage from a slow leak, poor maintenance or ongoing humidity.
- Many policies require you to report damage promptly and take reasonable steps to prevent further damage, such as stopping the water and drying things out.
Those are general patterns, not a description of your coverage. Read your own policy's mold and water-damage sections, and ask your agent or insurer what applies before remediation begins. Licensed insurance adjusters and public adjusters are exempt from mold licensing for their regulated adjusting work under 16 TAC §78.30(f)(2), so an adjuster may look at the damage as part of a claim.
Who pays for mold remediation in Texas?
For a homeowner, the short answer is: you do, unless your policy covers the loss or another party is responsible for the water. That is why the steps you take right after a leak, hailstorm or flood matter so much:
Stop the water
EPA's mold guide warns, "If you clean up the mold, but don't fix the water problem, then, most likely, the mold problem will come back."
Dry quickly
EPA says, "It is important to dry water-damaged areas and items within 24-48 hours to prevent mold growth."
Document
Take dated photos of the source, the damage and any visible growth before anything is moved or thrown away. Keep receipts.
Call your insurer
Ask what is covered, what documentation they want, and whether they need to see the damage before work starts.
Get written quotes
Estimates from licensed pros give you and your insurer a clear scope and price.
For renters, TDLR's consumer sheet notes that "Current Texas law does not require landlords or property owners to inspect for or clean mold." Texas Property Code §92.052 does require a landlord to make a diligent effort to repair conditions that materially affect the health or safety of an ordinary tenant, after proper notice, though the statute does not mention mold by name. Renters should review §92.052 and get legal advice for their situation.
What the MDR-1 certificate is
Texas regulates mold work through the Texas Department of Licensing and Regulation (TDLR) under Texas Occupations Code chapter 1958 and 16 TAC chapter 78. When a licensed remediator finishes a project, the law requires a certificate:
- Texas Occupations Code §1958.154(a): "Not later than the 10th day after the date on which a license holder completes mold remediation at a property, the license holder shall provide a certificate of mold remediation to the property owner."
- 16 TAC §78.150(b) says the certificate is provided "on a form adopted by the Texas Commissioner of Insurance" (TDI form MDR-1), and it includes "a statement by a licensed mold assessment consultant (not the licensed mold remediator)" that the contamination "has been remediated as outlined in the mold remediation protocol." Under §78.150(a), before and after photos also go to the owner within 10 calendar days.
The certificate is the end of a two-step process. A licensed assessor writes the protocol; a separate licensed remediator does the work, since Texas Occupations Code §1958.155 says a license holder "may not perform both mold assessment and mold remediation on the same project"; a licensed assessor does clearance; then the owner gets the MDR-1. Our process page covers each step, and our article on why the assessor and remediator must be different explains the rule.
Why insurers care about the certificate
TDLR's FAQ says a qualifying certificate "may be presented to an insurer who may not make an adverse underwriting decision regarding a residential property insurance policy based on previous mold damage if the requirements of the statute and related rules are met. See Insurance Code, §544.303(a)(4)(B)."
Put simply, a certificate from a properly done licensed project may help protect you from being turned down or penalized at underwriting because of mold damage that has already been fixed. The protection depends on the statute's conditions being met, so keep the certificate, the protocol, the clearance report and the photos together, and ask your insurer how they apply §544.303 to your policy.
Selling your home: the 5-year certificate rule
Can you sell a house with mold in Texas? The law does not ban it, but past certificates must be shared. Texas Occupations Code §1958.154(b) says a seller "shall provide to the buyer a copy of each certificate issued for the property under this section during the five years preceding the date the property owner sells the property."
That makes the MDR-1 part of your home's paper trail. A buyer who sees a certificate also sees that the work went through a licensed assessor, a separate licensed remediator and a clearance check, which is usually a better story than unexplained stains or a fresh coat of paint.
The owner liability shield
Texas Occupations Code §1958.303 says an owner "is not liable for damages related to mold remediation" if a certificate was issued and the damages "accrued on or before the date of the issuance of the certificate." This is one more reason to keep the certificate with your important home records. How it applies to any particular dispute is a question for a Texas attorney.
The DIY catch
A homeowner may do mold work on their own residential property with fewer than 10 units without a license, at any size, under §1958.102(e) and 16 TAC §78.30(b). But TDLR's FAQ says a consultant "who has not prepared a mold remediation protocol in advance of a remediation project cannot declare that the project has achieved clearance." If the paperwork matters to you for insurance or a future sale, plan for a licensed assessor before work starts, not after. For a hired company, a license is required once the job reaches 25 contiguous square feet (§1958.102(c)); see our guide to the 25-square-foot rule.
SB 1255 (2025) changed parts of chapter 1958, and TDLR says its current rules remain in effect until new rules are adopted. This is general information, not legal advice.
What to budget
These are typical national ranges from cost guides, 2024–2026, not quotes. The real price comes from licensed pros after an on-site assessment.
| Item | Typical range |
|---|---|
| Mold remediation, typical job | $1,200–$3,750 (This Old House avg about $2,300); Fixr range $1,500–$9,000, avg about $3,500 |
| Mold inspection | $450–$800 (HomeAdvisor data via Bob Vila: $299–$1,014, avg about $656) |
| Inspection + remediation, average home | $1,950–$5,800 |
Jobs of 25 contiguous square feet or more involve two separate licensed firms, so budget for both. See the full cost guide.
Get quotes that lead to a proper certificate
We connect Lubbock-area homeowners with TDLR-licensed mold assessors and remediators for free, no-obligation quotes. Tell us what you are seeing and whether an insurance claim is involved, and we will help you get quotes from licensed local pros. Ask any company for its TDLR license number and check it on TDLR's license search. Common questions are answered on our FAQ page.